NDIS Providers Must Keep Clear Invoices for GST-Free Claims
- johnry8
- Sep 2
- 2 min read
Updated: 3 days ago
If you are an NDIS provider, you may already know that many supports and services are GST-free. But, you cannot simply assume all invoices will qualify. The ATO requires clear and accurate invoices to support GST-free claims.
Without proper documentation, you risk losing the GST-free status I there is a ATO audit, which could result in unexpected GST liabilities. Many providers don’t know that a simple invoice isn’t enough and that it needs to clearly shows the right details to qualify for the GST-free status.
What Makes an Invoice “Clear”?
1. Essential Information - A valid GST-free invoice should include:
The words “GST-free supply” clearly stated
The provider’s ABN
The date of issue
A clear description of the services or supports provided
The total price charged
2. Why Clarity Matters
Ambiguous invoices can raise red flags. If your invoices do not clearly outline why the supply is GST-free, you may not be able to support your claim in case of an audit. This can lead to the ATO rejecting your GST-free treatment and forcing you to pay GST on past supplies.
3. Common Mistakes Providers Make
Forgetting to note “GST-free supply” on invoices
Using vague service descriptions that do not match NDIS categories
Mixing taxable and GST-free items in one line without separating them
Not keeping copies of invoices for their records
4. Best Practices for NDIS Providers
Use accounting software that automatically labels GST-free items
Train your staff to issue invoices correctly every time
Review invoices regularly to ensure accuracy
Keep digital and physical records for at least five years
Do’s and Don’ts
Do
State “GST-free supply” on your invoices when applicable
Provide detailed service descriptions
Keep copies of all invoices securely stored
Don’t
Leave invoices vague or incomplete
Assume all NDIS services are GST-free without checking
Wait until an audit to realise your invoices are not compliant
Insights From Our Experience
At Rise Accountants we have come across many NDIS providers who were unintentionally putting themselves at risk with unclear invoices. Once they set up proper invoicing systems, they not only reduced compliance stress but also felt confident that their GST-free claims would stand up under review.
Do you want to make sure your invoices support your GST-free claims and keep you fully compliant?